Ted Sioeng, His Family, and His Business Interests
Part I. Introduction
Ted Sioeng, his family, and his business interests gave
$400,000 to the DNC during the 1996 election cycle. Through
extensive analysis of bank records, the Committee has
determined that at least half of this figure, or $200,000, was
made with money wired into the U.S. from accounts in Hong Kong.
Where this money ultimately came from and why it was used for
hefty political contributions are two questions the Committee
cannot answer conclusively. The reason is that Sioeng and his
family left the U.S. after the campaign finance scandal broke
and, through their lawyers, indicated they are unwilling to
talk. The one family member who remains in the United States,
Sioeng's daughter Jessica Elnitiarta, was interviewed in June
1997 by Committee staff but, since then, has indicated she
would assert the Fifth Amendment if compelled to testify. \1\
However, the Committee developed documentary and circumstantial
evidence as to the answers to the aforementioned questions.
That evidence is discussed below.
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\1\ Letter from Steven R. Ross and Mark J. MacDougall to The
Honorable Fred Thompson, September 17, 1997. (Ex. 1).
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In many senses, the story of Ted Sioeng is a microcosm of
the Committee's investigation. Sioeng is a wealthy Belize
citizen in his early fifties who, prior to the campaign finance
scandal, spent brief periods in the United States. Sioeng
controls a multinational business empire that appears to
generate substantial income, though not much of it within this
country. Sioeng has ties to the Government of China, but their
full extent is unknown. Despite making modest political
contributions in 1992, 1993, and 1994 in this country, Sioeng
became a major player in 1995 through a series of large
contributions made by him, his family, and his business
interests to a variety of candidates and political entities,
but mostly to the DNC. The contributions earned Sioeng
invitations to lavish fund-raisers attended by President
Clinton or Vice President Gore. The contributions, in some
cases, were made with foreign money.
Ted Sioeng became known to the Committee early in its
investigation. The first press interest in Sioeng stemmed from
his presence at DNC fund-raisers.\2\ Since that time, the
Committee has learned of Sioeng's connections to other key
figures in its investigation, including Maria Hsia and John
Huang, as well as his attendance at several DNC fund-raisers.
In the year leading up to the 1996 elections, Sioeng attended
four major DNC fund-raisers, each of which Huang had a hand in
organizing. To each event, Sioeng brought family members and/or
business associates.
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\2\ See, e.g., Richard T. Cooper, ``How DNC Got Caught in a Donor
Dilemma; Desire for Dollars to Boost Clinton's Reelection Bid Helped
Fuel Democrats' Pursuit of an Emerging Money Source--Asian Americans
with Strong Overseas Ties,'' Los Angeles Times, December 23, 1996, p.
A1.
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Sioeng attended the February 19, 1996 Asian Pacific
American Leadership Council fund-raiser at the Hay-Adams Hotel
in Washington, D.C. This was the first major DNC event
organized by Huang. On April 29, 1996, Sioeng attended a fund-
raising luncheon at the Hsi Lai Buddhist Temple in Los Angeles,
California, where he sat next to Vice President Gore. On May
13, 1996, Sioeng attended a dinner for President Clinton at the
Sheraton Carlton in Washington, D.C. where, again, he was
seated at the head table. Two months later, on July 22, 1996,
Sioeng and 48 friends and/or business associates attended a DNC
fund-raiser for President Clinton at the Century Plaza Hotel in
Los Angeles. At dinner, Sioeng sat to President Clinton's
immediate right. To the President's left was James Riady and
his wife Aileen.
The Committee's interest in Sioeng is not related solely to
his attendance at DNC events. It stems also from Sioeng's
relationships with Huang and Hsia, as well as the Chinese
government, and it has been piqued by the evidence that some of
Sioeng's political contributions were made with foreign money.
Sioeng's relationship to the Government of the People's
Republic of China has been the subject of press speculation
since early 1997.\3\ Based on its own investigation, as
discussed more fully elsewhere in the report,\4\ the Committee
has learned that Sioeng worked, and perhaps still works, on
behalf of the Chinese government. Sioeng regularly communicated
with PRC embassy and consular officials at various locations in
the United States, and, before the campaign finance
investigation broke, he traveled to Beijing frequently where he
reported to and was briefed by Chinese communist party
officials.
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\3\ See, e.g., Mark Hosenball, ``On the Trail of a `China
Connection' '' Newsweek, March 10, 1997, p. 30 (noting Sioeng's
``close'' connections to the PRC consulate in Los Angeles); Daniel
Klaidman and Mark Hosenball, ``The Feds Explore a China-California
Money Trail,'' Newsweek, April 28, 1997, p. 40 (``The Sioeng money
transfer is the first `verifiable, direct link to the People's Republic
of China,' one investigator told Newsweek.''); K. Connie Kang and David
Rosenzweig, ``Entrepreneur Formed Ties to China, then Politicians,''
Los Angeles Times, May 18, 1997, p. A1 (discussing Sioeng's business
and political ties to China in context of allegations that he is
``working as Beijing's political operative in the United States'');
Daniel Klaidman, ``Cracking a Chinese Code,'' Newsweek, June 9, 1997,
p. 46 (citing information from ``federal investigators'' that Sioeng
was chosen as the ``West Coast Representative'' in the U.S. by the
Chinese communist party).
\4\ See the chapter of this report entitled ``The China
Connection.''
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The Sioeng story is a microcosm because it is a tale of
foreign money and, possibly, foreign influence. One familiar
refrain encountered by the Committee during its efforts to
uncover the Sioeng story was a series of obstacles separating
investigators from the truth behind Sioeng's political
activities. Most of what the Committee has learned about Sioeng
derives from bank records the Committee subpoenaed, an
interview with Sioeng's daughter, Jessica Elnitiarta,
information provided to the Committee by Sioeng's attorneys,
and references to Sioeng in other documents produced to the
Committee. The investigation, though, has been hampered by the
unavailability of witnesses and their unwillingness to speak to
Committee staff. As noted, Sioeng and most of his family have
left the country. Elnitiarta has remained behind but has
asserted her Fifth Amendment privilege, as have the two
Democratic fund-raisers, Huang and Hsia, with apparent ties to
the family. Moreover, business associates of Sioeng generally
proved unhelpful. Early in the investigation, Committee staff
spoke to Sioeng's friend and business associate Kent La,\5\ but
he also would not appear voluntarily for a deposition. The
Majority attempted to compel La's testimony, but the Minority
objected to the subpoena. For months, Sioeng's attorneys held
out the promise that Sioeng would agree to be interviewed at a
location outside the United States. That promise was not kept.
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\5\ Memorandum of Interview of Kent La, May 14, 1997.
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The balance of this section is divided into two parts. Part
II discusses Ted Sioeng, his family, and his business
interests. Only those activities relevant to the Committee's
investigation are discussed. Part III examines the major
political contributions made by Sioeng, his family, and his
business interests during the 1996 election cycle. Through an
analysis of bank records produced to the Committee, an attempt
is made to trace the origins of these various contributions.
One conclusion the Committee has drawn is that much of the
money contributed by Sioeng and his family is traceable to
foreign sources--pecifically, bank accounts in Hong Kong. This
is significant because such contributions are illegal.\6\ Most
of these contributions were to the DNC, which purported to
investigate the same and concluded the contributions were legal
and proper.\7\
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\6\ See 2 U.S.C. Sec. 441e.
\7\ DNC spokeswoman Amy Weiss Tobe was reported as saying the party
decided not to return the Sioeng family contributions because Jessica
Elnitiarta is a legal permanent resident of the United States and that
Sioeng himself had not contributed to the DNC. Paul Jacobs and Dan
Morain, ``State Treasurer Sends Back Campaign Contributions that May
Have Originated in China,'' Los Angeles Times, April 23, 1997, p. A3.
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Part II. Sioeng's Activities Here and Abroad
A. Sioeng and his businesses
Ted Sioeng, originally from Indonesia, is a citizen of
Belize who splits his time between Singapore and Hong Kong.
Sioeng's daughter, Jessica Elnitiarta, is a permanent resident
alien who came to the United States in 1986.\8\ Most of her
family (excluding her father) are now permanent resident
aliens. Other family members once or currently in the United
States are her sisters Laureen, and Sandra, her brothers Yopi
and Yohan, and her mother.\9\ The Sioeng/Elnitiarta family
speaks Chinese (Mandarin and Cantonese), Bahasa, and some
English.
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\8\ Unless otherwise indicated, the information contained in Part
II of this discussion derives from an interview of Jessica Elnitiarta
conducted by the Committee on June 19, 1997. See Memorandum of
Interview of Jessica Elnitiarta, Sept. 18, 1997.
\9\ The Committee has learned that all of Sioeng's family has left
the country except Jessica and possibly Yopi. The others have gone to
Hong Kong. Parenthetically, the family uses Elnitiarta, not Sioeng, as
its surname. Elnitiarta is the mother's maiden name.
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Through the marriage of his daughter, Ted Sioeng's family
is related to the Tanuwidjajas, a family with substantial
business interests in Indonesia.10 Sioeng's
daughter, Laureen, married Subandi Tanuwidjaja, son of Susanto
Tanuwidjaja, in March 1996. Subandi has been identified as ``an
Indonesian menswear manufacturer.'' 11 John Huang, a
self-professed friend of the Tanuwidjaja family, asked the
White House for a letter congratulating Laureen and Subandi on
the occasion of their marriage.12 Huang may have
become acquainted with the Tanuwidjaja's when he worked with
Susanto Tanuwidjaja at the Lippo Bank's San Francisco
office.13
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\10\ Although the Committee knows little about the Tanuwidjaja's
business holdings, here or elsewhere, FEC records indicate that Subandi
Tanuwidjaja is an architect in Diamond Bar, CA and Suryanti is a
writer/producer in La Habra Heights, California.
\11\ George Archibald, ``Democrats Disclose Big Contributors,''
Washington Times, October 30, 1996, p. A13.
\12\ Facsimile from John Huang to Anne Edder, March 6, 1996. (Ex.
2).
\13\ See Deposition of Diane Poon, April 30, 1997, p. 25.
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Sioeng's business empire is centered in Asia. Most of the
businesses are in greater China, Macao, and Cambodia. The
family has owned or currently owns several businesses in the
PRC, including a beer factory, a rebuilt machinery factory, and
a portion of a hotel (in the Yunnan province). Currently, the
family's main business is a cigarette manufacturing and
distribution operation in Singapore, which is run by Chinois, a
partnership between Sioeng, Hong Kong businessman Bruce Ceung,
and several companies. Chinois manufactures and distributes Red
Pagoda Mountain (``Hong Ta Shen'') cigarettes. It holds
manufacturing and distribution rights granted by the PRC
government, and is obligated to purchase raw materials for the
cigarettes from a government factory in Yu Xi, located in the
Yunnan province.
The family has a growing U.S. business presence presided
over by Jessica Elnitiarta. The family holdings and interests
include:
International Daily News, a Chinese language daily in
Los Angeles. The paper is discussed in more detail in
the section that follows;
Metropolitan Hotel, a hotel and restaurant
in Los Angeles;
Pacific Motel, a modest establishment in the
Los Angeles area;
Panda Estates, a real estate firm that owns
Doheny Estates, comprised of luxury rental townhouses
in Beverly Hills. The family purchased Doheny in 1993
in a foreclosure sale, and completed construction on
the townhouses in 1995;
Panda Industries, an import export business;
Loh Sun International, a company that
distributes Red Pagoda Mountain cigarettes in the
United States. Jessica Elnitiarta told the Committee
that the family does not ``control'' Loh Sun, but
simply does business with it. However, in a brief phone
interview conducted in May 1997, Loh Sun's president
and registered agent, Kent La, indicated that Jessica
Elnitiarta is his supervisor; 14 and
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\14\ The Committee staff's telephone interview with Kent La took
place on May 13, 1997. During the interview, La indicated Jessica
Elnitiarta is his boss.
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Grand National Bank, located in Alhambra,
California. Jessica, Sandra, and Laureen Elnitiarta are
investors in the bank and own approximately 19 percent
of its outstanding stock. Jessica first purchased Grand
National Bank stock in 1992 and owns 100,000 shares.
Laureen and Sandra each own 45,000 shares, which they
purchased in November 1995. It appears that most of the
family's business and personal accounts are held at the
Grand National Bank.
Sioeng provides the working capital for all of his U.S.
businesses, which receive regular cash infusions through
transfers of funds from overseas accounts. Jessica told the
Committee that the sources of Sioeng's funds are his businesses
abroad. The cash infusions typically originate in Hong Kong,
where funds are wired to the Grand National Bank account of
Sioeng's sister, Yanti Ardi. The money is then distributed to
various business or family accounts as necessary. Jessica, who
holds power of attorney for Yanti Ardi's account, controls
distribution of the money. Sioeng regularly provides such
funds, although Panda Estates and Metropolitan Hotel have
generated a non-trivial amount of cash flow.
B. International Daily News
In October 1995, Sioeng and his family contracted to
purchase the International Daily News, a Chinese-language
newspaper in Los Angeles. They paid between $3 and $4 million
for the paper, making payments over the next several months.
The purchase was consummated on July 1, 1996.
The paper was paid for largely through checks written on
one of Yanti Ardi's accounts at the Grand National Bank.
Between October 1995 and July 1996, some $2,590,000 was
transferred from Ardi's account to the International Daily News
and C. International Publications, the company that owns the
paper itself. Almost all of the purchase money appears to
derive from businesses located in Hong Kong. These businesses,
Victory Trading Company, Pristine Investments Limited, and R T
Enterprises Limited, also funded some of the Sioeng family's
political contributions, as is discussed below.
It is not entirely clear why the Sioeng family purchased
the paper. Jessica recounted that buying the paper was Sioeng's
idea (in consultation with Jessica, who ended up overseeing
it). Sioeng had been a significant advertiser for the paper and
was close to the former owner (Chen), who started lobbying
Sioeng to buy it back in 1993. According to Jessica, Sioeng
purchased the paper because (i) it would enhance the family's
standing in the local community, (ii) it was cheap, and (iii)
there were tax advantages to assuming the paper's debt.
Another explanation is that Sioeng purchased the paper with
the approval of or otherwise to please the Chinese government.
Prior to its purchase, the International Daily News was a pro-
Taiwan publication. According to Newsweek, ``Now the paper is
breathlessly pro-Beijing.'' 15 Newsweek goes on to
report from its sources that Sioeng's purchase of the paper may
have been encouraged or even bankrolled by the
PRC.16 In any event, since the purchase, the paper
has consistently lost money and is subsidized by Sioeng with
funds from overseas.
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\15\ Daniel Klaidman and Mark Hosenball, ``Connecting the Dots,''
Newsweek, April 28, 1997, p. 40.
\16\ Id.
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In a June 1996 letter to Sioeng, President Clinton praised
the International Daily News for ``faithfully report[ing] both
local and international issues'' and for being ``part of the
lasting heritage of the Chinese-American community.''
17 John Huang arranged for the letter at Jessica's
request.
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\17\ Letter from President Clinton to Ted Sioeng, June 20, 1996.
(Ex. 3).
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The Committee has learned that the Sioeng family owns the
International Daily News through a series of companies. The
newspaper is owned by Chen International Publications (U.S.A.),
Inc., a California company in turn owned by Sioeng's Group,
Inc. Sioeng's Group, Inc. was described by Sioeng's attorneys
as a holding company owned by Jessica Elnitiarta, her four
siblings, and their mother. Jessica holds the largest share and
is the sole director and officer of the company. Jessica also
serves as the Secretary and CFO of Chen International. Sieong
Fei Man is the newspaper's general manager.
In addition to purchasing the paper, Sioeng, it appears,
supplements its operations with cash infusions. While it is not
clear whether the International Daily News generates a
substantial cash flow for Sioeng, it is apparent he has
supplemented its income and that he has done so with money
transferred from Hong Kong accounts.
C. Sioeng's political contributions
Since 1992, but starting in earnest during the 1996
election cycle, Sioeng and his family have become prolific
political contributors. The Committee has been able to
determine that Sioeng, his family, and his business interests
have made the following contributions to political candidates,
parties, and affiliated non-profit entities: 18
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\18\ There may be other contributions about which the Committee is
unaware.
----------------------------------------------------------------------------------------------------------------
Date From To Amount
----------------------------------------------------------------------------------------------------------------
3/23/92.................................. Sioeng San Wong \19\........ Friends of Bonnie Wai....... $500
\19\ Sioeng San Wong is another version
of the name ``Ted Sioeng.''
5/12/92.................................. Sioeng San Wong............. A. Yung Hsiang Wu........... 10,000
6/20/92.................................. Sioeng San Wong............. Alfred Y. Wu................ 1,500
6/20/92.................................. Sioeng San Wong............. Yung Hsiang Wu.............. 5,000
3/25/93.................................. Jessica Elnitiarta.......... Mike Woo for Mayor.......... 1,000
5/27/93.................................. Jessica Elnitiarta.......... Mike Woo for Mayor.......... 1,000
6/4/93................................... Sioeng San Wong............. Michael Woo for Mayor....... 2,500
9/11/93.................................. Jessica Elnitiarta.......... California Republican Party. 2,000
1/26/94.................................. Sioeng San Wong............. Friends to Elect Sam Kiang.. 1,000
4/16/94.................................. Sioeng San Wong............. Friends of Michael Woo...... 1,000
9/28/94.................................. Jessica Elnitiarta.......... Matt Fong for Treasurer..... 2,000
3/11/95.................................. Sioeng San Wong............. Friends of Norman Hsu....... 7,500
3/25/95.................................. Sioeng San Wong............. Comm. to Elect Miu Mey Chang 1,500
4/20/95.................................. Sioeng San Wong............. Matt Fong for State 20,000
Treasurer.
4/28/95.................................. Sioeng San Wong............. Matt Fong................... 30,000
7/18/95.................................. Panda Industries, Inc....... National Policy Forum....... 50,000
12/14/95................................. Panda Estates Investment.... Matt Fong for State 50,000
Treasurer.
2/15/96.................................. Su/Sa/La Elnitiarta \20\.... Dr. Daniel Wong............. 5,000
\20\ These checks were written on an
account held jointly in the names of
Sundari, Sandra, and Laureen Elnitiarta.
2/19/96.................................. Jessica Elnitiarta.......... Democratic National 100,000
Committee.
7/12/96.................................. Panda Estates Investment.... Democratic National 100,000
Committee.
7/29/96.................................. Panda Estates Investment.... Democratic National 50,000
Committee.
7/29/96.................................. Loh Sun International....... Democratic National 50,000
Committee.
7/29/96.................................. Su/Sa/La Elnitiarta......... Gary Locke for Governor..... 1,100
7/29/96.................................. Jessica Elnitiarta.......... Gary Locke for Governor..... 1,100
9/9/96................................... Subandi Tanuwidjaja......... Democratic National 60,000
Committee.
9/16/96.................................. Suryanti Tanuwidjaja........ Democratic National 20,000
Committee.
9/19/96.................................. Subandi Tanuwidjaja......... Democratic National 20,000
Committee.
----------
Total..................... ............................ 593,700
----------------------------------------------------------------------------------------------------------------
While Sioeng made an impressive number of contributions
throughout the 1994 and 1996 election cycles, the table above
shows that Sioeng's largesse became far more prolific starting
in 1995. John Huang's influence clearly had something to do
with this. But whatever other influences motivated Sioeng
largely are unknown.
1. Contributions to the DNC
John Huang solicited all of the family's contributions to
the DNC. In total, Sieong's family and business interests
contributed $400,000 to the DNC in 1995 and 1996. Most of this
was given in connection with specific fund-raising events to
which Sioeng, his family, and business associates were invited.
These events provided Sioeng an opportunity to impress his
guests and to meet President Clinton or Vice President Gore.
The family put great value on such meetings and on having their
pictures taken with political leaders. Jessica considered the
family's attendance at such events a way to honor her father.
A member of the Chinese-American community in Los Angeles
first introduced Huang to the Sioeng family in 1995. According
to Jessica, Huang is not a close family friend, but instead a
prominent person in the Chinese-American community whom they
came to know reasonably well. Regardless, it is clear Huang was
treated by Sioeng's family with familiarity and respect. For
example, in correspondence relating to the Sheraton Carlton
fund-raiser Huang helped organize, Jessica referred to him as
``Uncle Huang.'' 21
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\21\ Memorandum from Jessica to Uncle Huang, undated. (Ex. 4).
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Huang first mentioned political fund-raising to Jessica in
January 1996, when he indicated that he could arrange for the
family to meet President Clinton at a fund-raiser in Washington
in February. This turned out to be a February 19, 1996 fund-
raiser at the Hay Adams Hotel. After some back and forth among
the family and with Huang, it was agreed that eight people--
family and business partners 22--would attend,
including Sioeng, who flew in from the Far East for the event.
Jessica Elnitiarta paid $100,000 (figured at $12,500 per
attendee, in accordance with the ``price'' of the event
described by Huang in advance) by personal check. Her sister
delivered the check to Huang at the event, making sure of the
correct amount with Huang before filling it in. All eight
attendees had their picture taken with President Clinton.
Because the family decided to attend so late, however, they had
poor seats for the dinner, a matter that caused Huang to
apologize afterwards. Jessica told the Committee that the
source of the contributions was revenue from Panda Estates. By
analyzing relevant bank records, the Committee determined that
Jessica's statement is incorrect, and that the $100,000 came
from an account in Hong Kong.23
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\22\ The attendees were: Sioeng; Sandra Elnitiarta and husband;
Yopi Elnitiarta; Jimmy Tsang, a business partner, and his wife; Lie
Kwee Kei, a Hong Kong business partner; and Bruce Cueng, the Chinois
partner.
\23\ See discussion below on Jessica's $100,000 contribution to the
DNC of February 19, 1996.
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Huang next contacted Jessica to see if the family would
like to attend the April 29, 1996 Hsi Lai Temple fund-raiser.
He made it clear that he would ``comp'' the family's attendance
as a way to make up for their poor seats at the Hay Adams event
in February. Jessica explained that one of her sisters is
Buddhist and was very excited at the prospect of meeting the
Venerable Master of the Temple; for the family, this was of
equal importance to meeting Vice President Gore. Sioeng again
flew from the Far East, and the family brought five attendees
to the event.24 Huang made sure that Sioeng sat next
to Vice President Gore, which the family considered a huge
honor. The family paid nothing to attend.
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\24\ Sioeng and wife, Jessica Elnitiarta, Laureen Elnitiarta, and
Sioeng Fei Man, general manager of the International Daily News.
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Huang later called in May 1996 about another event where
the family could see President Clinton. He explained that it
would be a small dinner in Washington, and asked whether the
family would like to participate. Jessica communicated this to
Sioeng, who was very excited, viewing it as a good opportunity
to impress some of his business partners from overseas. They
accepted, and in this case, Jessica sent Huang a list of
invitees in advance. The dinner was held on May 13, 1996, at
the Sheraton Carlton in Washington. The family's attendees
were:
Ted Sioeng;
Chio Ho Cheong, President, Ang-Du
International Corporation Ltd.;
Guo Zhong Jian, Deputy General Manager,
China Construction Bank, Hong Kong Branch;
Lin Fu Qiang, Managing Director, Everbrite
Asia Limited, Hong Kong;
Chan Elsie Y.Z., Managing Director, Ang-Du
International Corporation Ltd.;
Kent La, President, Loh Sun International;
and
He Jian Shan.25
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\25\ Ex. 4.
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It appears Sioeng met and spoke to President Clinton at the
Sheraton Carlton event. By letter dated May 28, 1996, the
President thanked Sioeng for attending the fund-raiser and,
more generally, ``for being there when you are asked to help.''
26 President Clinton noted that he had ``enjoyed
having the chance to talk'' with Sioeng, and expressed hope
that Sioeng would ``continue to share [his] advice and
insight.'' 27
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\26\ Letter from Bill Clinton to Ted Sioeng, May 28, 1996. (Ex. 5).
\27\ Id. Note that Sioeng is not a citizen or legal permanent
resident of the United States and, therefore, he cannot legally
contribute to the DNC or any other national political parties.
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Jessica told the Committee she knew that she would need to
pay for the May dinner, but Huang did not push her. He
invited--begged actually, as Jessica recalls--the family to
attend an additional event in July at the Century Plaza Hotel
in Los Angeles. The event, which was larger than the previous
dinners, was held on July 22, 1996, and Huang indicated that he
was having difficulty finding people to attend. He encouraged
Jessica to bring as many people as she would like. Sioeng flew
in for this event, bringing one business associate (Lam Kwok
Man, from Hong Kong), and the family came with approximately 48
local friends. Jessica Elnitiarta made a $100,000 contribution
to the DNC (from the account of Panda Estates) on July 12, 1996
to cover the seats for the May fund-raiser, figuring the price
at $12,500 per seat. Later, on July 29, 1996, Jessica wrote an
additional $50,000 check--also on the Panda Estates account--to
the DNC to cover the July Century City event. Jessica
considered the price-per-head for the Century City event
significantly less than that for the Sheraton Carlton fund-
raiser in May.
Jessica disclaimed any involvement in several other
contributions. One was a Loh Sun International contribution of
$50,000 to the DNC on July 29, 1996 (the same day as the
Century City fund-raiser and the $50,000 contribution from
Panda Estates to the DNC). Jessica stated that she knew nothing
about this until she read about it in the papers. Jessica's
seeming attempt to distance the Sioeng family from Loh Sun is
belied by the obvious financial relationship between them. As
described below, a wire transfer to Loh Sun from R T
Enterprises--one of the businesses that often wired funds from
Hong Kong to Sioeng family accounts in the United States--may
have funded some or all of Loh Sun's $50,000 contribution to
the DNC. In addition, a check signed by Kent La, Loh Sun's
president, was deposited into Sioeng's account and may have
been used to fund Panda Industries' 1995 contribution to the
National Policy Forum, also discussed in more detail below.
Moreover, in December 1995 and January 1996, Jessica wrote two
checks to Kent La totaling $58,000.28 In the memo
line of these checks is written, ``Hong ta Shan,'' the brand of
cigarettes Loh Sun distributes.
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\28\ See December 1995 check to Kent La from Jessica Elnitiarta for
$50,000 (Ex. 6).
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Other contributions Jessica disclaimed knowledge of were
made by the Tanuwidjajas, her family's in-laws, who wrote three
checks totaling $100,000 to the DNC in 1996. Jessica claimed to
know nothing about these contributions. However, the
Tanuwidjaja family attended at least one fund-raiser with
Jessica, and two of the three Tanuwidjaja contributions were
solicited by John Huang.29
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\29\ Curiously, DNC check-tracking forms indicate that Huang
attributed three Sioeng-related checks to a small, July 30, 1996 dinner
at the Jefferson Hotel attended by President Clinton. A July 29, 1996
Panda Estates Investment check for $50,000 (Ex. 7), a September 9, 1996
Subandi Tanuwidjaja check for $60,000 (Ex. 8), and a July 29, 1996 Loh
Sun International check for $50,000, (Ex. 9), are all listed by Huang
as connected to the July 30, 1996 dinner. Among the intimate dinner's
attendees were President Clinton, Huang, DNC Chairman Donald Fowler,
James Riady, Taiwanese businessmen Eugene T.C. Wu and James L.S. Lin of
the Shin Kong Group, and Sen Jong ``Ken'' Hsui, a Taiwanese-American
businessman who is president of Prince Motors. See Alan C. Miller and
David Rosenzweig, ``Clinton Dinner Gives Probes Some Questions to Chew
On,'' Los Angeles Times, February 7, 1997, p. A1. No one from the
Sioeng or Tanuwidjaja families attended the dinner.
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Huang called later in 1996 about other events in Chicago
and San Francisco, but by that time Jessica had lost interest
in the process. She felt she had adequately honored her father
and did not need to participate further.30
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\30\ Jessica told the Committee she has spoken only once to Huang
since the campaign finance story broke in October 1996, and then only
in passing at a community event.
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2. Contributions to Matt Fong
Sioeng and Panda Estates made three contributions to Matt
Fong in 1995, totaling $100,000. At the time, Fong was running
for Treasurer of the State of California. Sioeng contributed a
total of $50,000 in April 1995. Later, in December 1995,
Jessica Elnitiarta contributed $50,000 more through Panda
Estates.
According to Jessica, the contributions were the result of
some intense fund-raising appeals from Fong personally, and
others on his behalf. Faye Huang (a local activist not related
to John Huang) participated in a fund-raiser the Sioeng family
held for a local candidate (Julia Wu) at the Metropolitan Hotel
in 1994. Faye Huang subsequently approached the family for
contributions on behalf of Fong. She courted both Sioeng and
Jessica aggressively, and Sieong eventually made his
contributions in April 1995. The checks were filled out in part
by Faye Huang.
On April 22, 1997, after press stories had appeared linking
Sioeng to the campaign finance scandal, Fong returned the
contributions from Sioeng and Panda Estates. Fong had requested
that Sioeng and Jessica verify that the contributions were not
from foreign sources.31 When Sioeng and his daughter
failed to respond within a 24-hour deadline, Fong returned the
contributions, stating, ``I want absolutely no cloud, no
suspicion, no doubt about my campaign conduct or my performance
in public office.'' 32
---------------------------------------------------------------------------
\31\ See Paul Jacobs and Dan Morain, ``Fong Returns $100,000 in
Gifts,'' Los Angeles Times, April 23, 1997, p. A3.
\32\ Id.
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By letter dated May 27, 1997, attorneys for Jessica and
Panda Estates responded to Fong.33 The letter
criticizes ``Mr. Fong and his campaign [for joining] in the
shameful rhetoric directed at Asian-Americans.'' 34
It states further that Jessica relied ``upon the direct
representations made by the Fong campaign . . . that Panda
Estates could properly contribute to Mr. Fong's campaign.''
35 Although the letter notes that Panda Estates
operated the Doheny Estates condominium complex in Beverly
Hills, it does not represent--let alone prove--that the source
of the Panda Estates contribution to Fong was its domestically-
generated income. In fact, the Committee has determined that at
least a portion of one Sioeng contribution to Fong was made
with foreign money.
---------------------------------------------------------------------------
\33\ Letter from Mark J. MacDougall and Steven R. Ross to William
R. Turner, May 27, 1997. (Ex.10). The letter indicates that it was sent
after Fong's deadline because ``Ms. Elnitiarta was traveling at the
time [Fong's] letter arrived.''
\34\ Id.
\35\ Id.
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3. Contribution to the National Policy Forum
On July 18, 1995, Panda Industries made a $50,000
contribution to the National Policy Forum (NPF). Exactly how
this came about is uncertain, though it appears Sioeng's
acquaintance with the NPF began with Matt Fong. Perhaps in
gratitude for Sioeng's earlier contributions, Fong arranged in
June 1995 for Sioeng to have his picture taken with Speaker
Gingrich in Washington, DC. Later, Fong sent a letter in
support of a Los Angeles badminton tournament Sioeng
underwrote, and arranged for Gingrich to send a similar letter.
Around the same time, Sioeng and Elnitiarta took steps to
host a fall 1995 fund-raiser featuring Speaker Gingrich at
their Los Angeles hotel. They thought such an event would add
to the hotel's prestige. The fund-raiser ended up occurring at
another Los Angeles hotel, but Sioeng and family members
nevertheless attended the event. The July 18, 1995 contribution
of $50,000 to the NPF was solicited by a fund-raiser named
Steve Kinney. Elnitiarta characterized it as a gesture of
gratitude for the photo with the Speaker and also an attempt
(unsuccessful, as it turns out) to persuade people to hold the
fund-raiser at the family hotel.
Although discussed in detail elsewhere in the report,
36 some brief background information on the NPF is
warranted. The NPF was an independent 501(c)(4) organization
created by Haley Barbour to serve as a grass roots organization
for the Republican exchange of ideas. It had no PAC, donated no
money, and did not advocate the election or defeat of any
candidate. It was not legally prohibited from accepting foreign
money.
---------------------------------------------------------------------------
\36\ See the section of this report on the National Policy Forum.
See also infra note 84.
---------------------------------------------------------------------------
part iii. analysis of sioeng/elnitiarta/tanuwidjaja political
contributions made with foreign money: 1995-96
Ted Sioeng, Jessica Elnitiarta, the family's businesses,
and their in-laws, the Tanuwidjajas, made a number of
significant political contributions in 1995 and 1996. In total,
the Sioeng family and businesses spent over half a million
dollars on the 1996 elections.
The Committee has examined bank records relevant to most of
family's large political contributions and discovered a
recurring pattern: wire transfers from Hong Kong companies to
Sioeng & Co. accounts in the United States. Five companies--
Pristine Investments Limited, R T Enterprises Limited, Dragon
Union Limited, Mansion House Securities, and Victory Trading
Company--believed to be based in Hong Kong, are the apparent
source of funding for many of the Sioeng family's activities in
this country. In 1995 and 1996, these companies transferred
millions of dollars from Hong Kong banks into U.S. accounts
held by Sioeng's sister, Yanti Ardi.37 Jessica
Elnitiarta, who held a durable power of attorney over Ardi's
account,38 distributed money from the account to
other Sioeng family accounts and directly to Sioeng-related
businesses and interests. Funds from Ardi's account eventually
were used to make political contributions, to purchase and
subsidize the International Daily News, and to fund other
activities in this country.
---------------------------------------------------------------------------
\37\ The account in Ardi's name was not the only one used as a
conduit for foreign funds. On November 13, 1995, the Sioeng family set
up another such account at the Grand National Bank, this one in the
name of Nanny Nitiarta, an Indonesian citizen of unknown relation to
the family. Like Ardi's account, Nanny's appears to have been used to
shift money from overseas to various Sioeng-family accounts and
business interests. For example, on November 5, 1996, Nanny's account
was credited with a $700,000 wire transfer from a Hong Kong account
held by R T Enterprises Limited. (Ex. 11). A day later, Jessica wrote a
check on Nanny's account for $140,000 to the International Daily News.
(Ex. 12). The check was reversed because Jessica did not have signature
authority over the account (Ex. 13) (though she had signed other checks
and authorized other transfers that were not reversed). On November 8,
1996, $700,000 was transferred from Nanny's account to Yanti's. (Ex.
14). Jessica remedied the signature problem by executing a durable
power of attorney over Nanny's account on November 20, 1996. (Ex. 15).
Nanny's account was closed on March 14, 1997.
\38\ Grand National Bank Durable Power of Attorney to Jessica G.
Elnitiarta, December 20, 1995. (Ex. 16).
---------------------------------------------------------------------------
Jessica's use of Yanti Ardi's U.S. bank account as a
holding pen for funds wired in from Hong Kong raises questions
about the origins of the Sioeng family's money as well as its
intended use in the United States. As noted, the Committee has
discovered that millions of dollars were wired into the U.S.
from Hong Kong bank accounts held in the names of foreign
firms. Because of the Committee's inability to compel
production of bank records located outside U.S. borders, the
Committee cannot determine the source of the dollars wired into
Sioeng family accounts in this country.
The Committee's analysis of Sioeng family bank records
reveals that at least $200,000 in contributions to the DNC
derived from foreign sources. In addition, some $16,000 in
contributions to Matt Fong are linked to foreign money. The
Majority staff has determined that the following contributions
derive in whole or in part from foreign funds: 39
---------------------------------------------------------------------------
\39\ See chart listing the largest Sioeng family contributions (Ex.
17).
------------------------------------------------------------------------
Check
Account name Donee Check date amount
------------------------------------------------------------------------
Panda Estates Investment...... Matt Fong..... 12/14/95 $50,000
Jessica Elnitiarta............ DNC........... 2/19/96 100,000
Panda Estates Investment...... DNC........... 7/12/96 50,000
Subandi Tanuwidjaja........... DNC........... 9/9/96 60,000
Subandi Tanuwidjaja........... DNC........... 9/19/96 20,000
------------------------------------------------------------------------
Only the Fong contribution has been returned. The DNC has
refused steadfastly to give back any of the Sioeng family
contributions.
The sections that follow discuss in detail the Sioeng
family contributions listed on Exhibit 17. The discussion
largely revolves around bank records produced to the Committee
pursuant to subpoenas. The records support the conclusions
drawn above; namely, that a substantial portion of the Sioeng
family contributions were made with foreign money.
A. DNC contributions
1. 2/19/96; Jessica Elnitiarta; $100,000
On February 19, 1996, Jessica Elnitiarta wrote a check for
$100,000 to the DNC.40 A DNC check tracking form
indicates the contribution related to a dinner held on the same
date at the Hay Adams hotel.41 Although the $100,000
check is dated February 19, 1996, it was not paid until
February 26, 1996.42
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\40\ $100,000 check from Jessica G. Elnitiarta to the DNC, Feb. 19,
1996. (Ex. 18).
\41\ DNC Check Tracking Form for Jessica G. Elnitiarta (Ex. 19).
\42\ Grand National Bank account statement for account number
210473306, Feb. 1-29, 1996. (Ex. 20).
---------------------------------------------------------------------------
As of February 19, 1996, Elnitiarta's account carried a
balance of less than $10,000.43 However, on February
22, 1996, Elnitiarta transferred $200,000 to her account from
Yanti Ardi's.44 Days later, half of this money was
used to satisfy the check Elnitiarta wrote to the DNC on
February 19, 1996. The source of funds in Yanti Ardi's account
at that time appears to be a $518,433.56 wire transfer from an
account maintained at the Hong Kong branch of the Dutch ING
Bank by a company called Pristine Investments,
Ltd.45 The wire transfer took place on February 12,
1996. Prior to the transfer, Ardi's account carried a balance
of less than $3,000.46 There were no additional
deposits into Ardi's account between February 12 and 22, 1997.
---------------------------------------------------------------------------
\43\ Id.
\44\ Grand National Bank Funds Transfer Authorization, Feb. 22,
1996. (Ex. 21).
\45\ Grand National Bank Miscellaneous Credit form, Feb. 12, 1996.
(Ex. 22).
\46\ Grand National Bank account statement for account number
240417614, Feb. 1-29, 1996. (Ex. 23).
---------------------------------------------------------------------------
In short, bank records indicate that Jessica Elnitiarta's
February 19, 1996 contribution of $100,000 to the DNC was made
with substantially all foreign funds.
2. 7/12/96; Panda Estates (family business); $100,000
Panda Estates Investment Inc. contributed $100,000 to the
DNC on July 12, 1996 from an account the report will refer to
as ``Panda 801.''47 At the time, the Panda account
had a negative balance of $598.55.48 The check to
the DNC was paid on July 25, 1996, leaving the Panda account
with a negative balance of $100,124.75.49 On July
26, 1996, $100,000 was transferred from a second Panda account
(``Panda 814'') to Panda 801,50 bringing the balance
of Panda 801 to negative $2,351.29.51 Hence, the
Panda 814 account was the source of the contribution from Panda
801.
---------------------------------------------------------------------------
\47\ $100,000 check from Panda Estates Investment, Inc. to DNC,
July 12, 1996. (Ex. 24).
\48\ Grand National Bank account statement for account number
200739801, June 29-July 31, 1996. (Ex. 25).
\49\ Id.
\50\ Grand National Bank Customer Authorization for Funds Transfer,
July 26, 1996. (Ex. 26).
\51\ Ex. 25.
---------------------------------------------------------------------------
The sources of the funds for Panda 814's $100,000 transfer
to Panda 801 appear to be (1) rental income received by Panda
Estates and (2) a $60,000 transfer from Yanti Ardi's U.S.
account. On July 25, 1996, Panda 814 carried a balance of
approximately $50,000,52 or not enough to cover a
$100,000 transfer. On July 26, 1996, a $60,000 check from Yanti
Ardi was deposited in Panda 814--a check whose source appears
to be funds received by wire transfer from a bank in Hong
Kong.53 On June 28, 1996, Yanti Ardi's U.S. account
was credited with $1,652,479.98, which had been transferred by
R. T. Enterprises Ltd. from the ING bank in Hong
Kong.54 On June 27, 1996, Ardi's account balance was
under $5,000.55 After the large R. T. Enterprises
transfer, there were no additional deposits into Ardi's account
until after the July 26, 1996 $60,000 transfer to Panda
814.56
---------------------------------------------------------------------------
\52\ Grand National Bank account statement for account number
200739814, June 29-July 31, 1996. (Ex. 27).
\53\ $60,000 check from Yanti Ardi to Panda Estates Investment,
Inc., July 26, 1996. (Ex. 28).
\54\ Grand National Bank Miscellaneous Credit form, June 28, 1996.
(Ex. 29).
\55\ Grand National Bank account statement for account number
240417614, June 1-28, 1996. (Ex. 30).
\56\ Grand National Bank account statement for account number
240417614, June 29-July 31, 1996. (Ex. 31).
---------------------------------------------------------------------------
In short, at least $50,000 of Panda Estate's $100,000 July
12, 1996 contribution to the DNC can be traced to foreign
money.57
---------------------------------------------------------------------------
\57\ Panda Estates Investment Inc. contributed $50,000 to the DNC
by check dated July 29, 1996 and drawn on the Panda 801 account. (Ex.
7). At the time the check was written, the Panda 801 account carried a
negative balance. (Ex. 25). The check was not paid until August 6,
1996, the same day two wire transfers totaling $50,000 were deposited
into the Panda 801 account. Grand National Bank Account statement for
account number 200739801, Aug. 1-Aug. 30, 1996 (Ex. 32). One transfer,
in the amount of $40,000, came from the Panda 814 account. Grand
National Bank Funds Transfer Authorization, Aug. 6, 1996 (Ex. 33). The
other transfer, this for $10,000, came from Code 3 U.S.A. Grand
National Bank account statement for account number 200739814, Aug. 6,
1996 (Ex. 34), which the Committee understands to be a gun shop run by
Elnitiarta's husband.
The $40,000 from Panda 814 was funded by a number of small
deposits, which appear to be rental payments made to Panda Estates.
Grand National Bank account statement for account number 200739814 (Ex.
35). The Committee does not know the source of the $10,000 wired from
Code 3. Hence, from the documents reviewed by the Committee, the July
29, 1996 Panda Estates contribution cannot be traced to foreign money.
3. 9/9/96; Subandi Tanuwidjaja; $60,000
9/19/96; Subandi Tanuwidjaja; $20,000
The Tanuwidjaja's contributed $100,000 to the DNC through
three checks dated in September 1996.58
Contributions dated September 9 and 19, 1996 and totaling
$80,000 were from Subandi Tanuwidjaja, son of Susanto
Tanuwidjaja, and the man who married Ted Sioeng's daughter,
Laureen. A contribution of $20,000 dated September 16, 1996 was
made by Suryanti.
---------------------------------------------------------------------------
\58\ $60,000 check from Subandi Tanuwidjaja to the DNC, Sept. 9,
1996. (Ex. 8). $20,000 check from Subandi Tanuwidjaja to the DNC, Sept.
19, 1996 and $20,000 check from Suryanti Tanuwidjaja to the DNC, Sept.
16, 1996. (Ex. 36).
---------------------------------------------------------------------------
The September 9 and 19 contributions from Subandi appear to
be covered by a $100,000 check from Susanto dated September 6,
1996,59 and a $20,000 wire transfer on September 18,
1996 from Dragon Union Ltd.'s account at the Hua Chiao
Commercial Bank Ltd. in Hong Kong.60 It is clear
from markings known as ``imad'' characters on the lower left of
the wire transfer report that the funds were, in fact,
transferred from Hua Chiao's Hong Kong branch.61
---------------------------------------------------------------------------
\59\ $100,000 check from Susanto Tanuwidjaja to Subandi
Tanuwidjaja, Sept. 6, 1996. (Ex. 37).
\60\ Reprint of Incoming Wire Traffic, Sept. 18, 1996. (Ex. 38).
\61\ Id.
---------------------------------------------------------------------------
On September 8, 1996, Subandi's account carried a balance
of less than $5,000.62 On September 9, 1996, the
$100,000 check from Susanto was deposited into Subandi's
account.63 On the same day, Subandi wired $38,000 to
a bank in Singapore,64 leaving a balance of
$66,049.99, or enough to cover Subandi's $60,000 check to the
DNC, also dated September 9, 1996.65 On September
18, 1996, Subandi's account was credited with the $20,000 wired
by Dragon Union Ltd, increasing the balance to
$86,039.99.66 Thereafter, the two DNC checks were
cashed; the $60,000 check on September 27 and the $20,000 check
on October 4, 1996.67
---------------------------------------------------------------------------
\62\ Western State Bank account statements for account number
033100-153947, Aug.-Oct. 1996. (Ex. 39).
\63\ Id.
\64\ Memorandum and report of outgoing wire traffic from Subandi
Tanuwidjaja to Western State Bank, Sept. 9, 1996. (Ex. 40).
\65\ Ex. 39.
\66\ Id.
\67\ Id.
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The $100,000 check from Susanto to Subandi can be traced in
large part to a foreign source. Susanto's account carried a
balance of less than $3,000 68 when it was credited
with a wire transfer in the amount of $99,985 from an account
maintained by Subandi in Jakarta, Indonesia.69
Again, it is clear from the ``imad'' characters on the left
side of the wire transfer report that the funds were
transferred from Subandi's United City Bank account in
Jakarta.70 There were only two other deposits into
Susanto's account between August 22 and September 9, 1996--one
for $20,000 on August 30 and one for $10,000 on September 3,
1996.71 These two deposits, however, appear
connected to debits in similar amounts.72
---------------------------------------------------------------------------
\68\ Western State Bank account statements for account number
033200-055538, Aug.-Oct. 1996. (Ex. 41).
\69\ Report of incoming wire traffic, August 22, 1996. (Ex. 42).
\70\ Id.
\71\ Ex. 41.
\72\ Id.
---------------------------------------------------------------------------
In any event, it is clear that Subandi's $80,000 in
contributions to the DNC derived mostly--if not entirely--from
foreign funds.
The Majority staff has obtained corporate records for
Dragon Union Ltd. in Hong Kong and have attached them as an
exhibit.73 The records show that Subandi
Tanuwidjaja's links to the company; he was made a director of
Dragon Union on January 27, 1997. Subandi's connection to
Dragon Union would tend to suggest he may have been aware that
foreign money was being used to make contributions to the
DNC.74
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\73\ The Companies Ordinance of Dragon Union Limited, Dec. 11, 1996
(Ex. 43).
\74\ Two other large Sioeng-family contributions to the DNC bear
mention, although the Committee has not been able to determine whether
or not they were made with foreign money. By check dated September 16,
1996, (Ex. 36), Suryanti Tanuwidjaja contributed $20,000 to the DNC.
Suryanti's contribution to the DNC was not paid until September 30,
1996. Bank of America statement of Suryanti Tanuwidjaja, Oct. 30, 1996
(Ex. 44). On September 18, 1996, Suryanti's savings account was
credited with a $20,000 wire transfer from Dragon Union Ltd.'s account
at the Hua Chiao Commercial Bank Ltd. in Hong Kong. Funds Transfer
History, Sept. 18, 1996 (Ex. 45). On the same day, Suryanti transferred
$24,000 from her savings to her checking account at Bank of America.
Bank of America statement of Suryanti Tanuwidjaja, Sept. 27, 1996 (Ex.
46).
Although the timing appears suspicious, the Committee has not been
able to identify conclusively the $20,000 wire transfer from Dragon
Union as the source of Suryanti's contribution to the DNC in the same
amount. There were sufficient additional funds in Suryanti's savings
account to cover the $24,000 transfer to checking. (Id.). Likewise,
there were sufficient additional funds in Suryanti's checking account
to cover the DNC check on September 30, 1996, the day it was paid. (Ex.
44).
Loh Sun International, Inc. contributed $50,000 to the DNC by check
dated July 29, 1996 and signed by Kent La. (Ex. 9). The check was not
paid until August 5, 1996, at which point the Loh Sun account carried a
balance of more than $250,000. Union Pacific Bank Records for Loh Suh
International, Aug. 30, 1996 (Ex. 47). On July 24, 1996, the Loh Sun
account was credited with $97,555, which had been wired by R T
Enterprises Limited from an account at a Hong Kong branch of the Dutch
ING Bank. Union Pacific Bank records for Loh Suh International, Inc.,
July 31, 1996 (Ex. 48). Although this was the largest deposit made into
Loh Sun's account in 1996 and the only one that, on its face, clearly
was made with foreign funds, the Committee was unable to determine
whether the money wired to Loh Sun by R T Enterprises was used to make
the DNC contribution. There was simply too much other money in Loh
Sun's account.
---------------------------------------------------------------------------
B. Matt Fong contribution
12/14/95; Panda Estates (family business); $50,000
The Committee has determined that one of three Sioeng-
family contributions to Matt Fong was made, in part, with
foreign money. Fong returned all of the contributions in April
1997.
Panda Estates Investment Inc. contributed $50,000 to Matt
Fong for State Treasurer on December 14, 1995.75 The
check was signed by Jessica Elnitiarta and paid on December 18,
1995.76 The balance in Panda Estates' account at
that time was only $7,000, and the check to the Matt Fong (and
one other check) left Panda with a negative balance of
$43,888.55.77
---------------------------------------------------------------------------
\75\ $50,000 Grand National Bank check from Panda Estates
Investment Inc. to Matt Fong for State Treasurer, Dec. 14, 1995. (Ex.
49).
\76\ Grand National Bank account statement for account number
200739801, Dec. 1-29, 1995. (Ex. 50).
\77\ Id.
---------------------------------------------------------------------------
On December 19, 1995, $50,000 was transferred to the Panda
account from one of Yanti Ardi's Grand National Bank
accounts.78 On December 11, 1995, Ardi's account was
credited with a wire transfer of $150,000 from a Hong Kong
account maintained by Pristine Investments
Limited.79 At the time, Ardi's account carried a
balance of approximately $34,000,80 which, in turn,
was the remainder of a $562,500 deposit into Ardi's account on
November 15, 1995.81 The $562,500 deposit was from a
check written on an account held in the name of Sandra and
Laureen Elnitiarta,82 an account the Committee does
not have records for.
---------------------------------------------------------------------------
\78\ Grand National Bank Customer Authorization for Funds Transfer,
Dec. 19, 1995. (Ex. 51).
\79\ Grand National Bank Miscellaneous Credit form, Dec. 11, 1995.
(Ex. 52).
\80\ Grand National Bank account statement for account number
240979814, Dec. 1-29, 1995. (Ex. 53).
\81\ Grand National Bank account statement for account number
240979814, November 13-30, 1995. (Ex. 54).
\82\ $562,500 Grand National Bank check from Sandra and Laureen
Elnitiarta to Yanti Ardi, November 15, 1995. (Ex. 55). Laureen
Elnitiarta's signature appears on the check.
---------------------------------------------------------------------------
In sum, the records reviewed by Committee staff show that
at least $16,000 of the $50,000 contribution from Panda Estates
to Matt Fong derived from a foreign source.83
---------------------------------------------------------------------------
\83\ The Committee examined two other Sioeng-family contributions
to Fong that cannot be traced to foreign sources from the information
at hand. Sioeng San Wong (a.k.a. Ted Sioeng) contributed $20,000 to
Matt Fong by check dated April 20, 1995. Check 671 to Matt Fong for
State Treasurer from Sioeng San Wong, Apr. 20, 1995 (Ex. 56). The check
was paid on April 27, 1995. Grand National Bank account statement for
Sioeng San Wong, Apr. 1-Apr. 28, 1995 (Ex. 57). Two days earlier,
Sioeng's account carried a balance of near zero. It appears that the
Fong check was covered by a $30,000 transfer on April 26, 1995 from
Sundari and Laureen Elnitiarta. Statement of Transfer, Apr. 26, 1995
(Ex. 58). Referred to as a ``loan advance,'' the $30,000 transfer
represented the only funds in Sioeng's account at the time his check to
Matt Fong was paid. (Ex. 57). The Committee does not know the source of
the $30,000 transferred from Sundari and Laureen to Sioeng.
Sioeng San Wong wrote another check to Matt Fong--this one for
$30,000--on April 28, 1995. Grand National Bank check from Sioeng San
Wong to Matt Fong for State Treasurer for $30,000, Apr. 28, 1995 (Ex.
59). This check was paid on May 2, 1995. Grand National Bank account
statement of Sioeng San Wong, Apr. 29-May 31, 1995 (Ex. 60). At the
time, Sioeng's account still had roughly $10,000 left from Sundari and
Laureen's loan advance and an additional $30,000 from a check written
on the account of a Glenville A. Stuart. Grand National Bank check from
Glenville Stuart to Sioeng San Wong for $30,000, Apr. 28, 1995 (Ex.
61). The check was deposited on April 28, 1995. (Ex. 57).
Committee staff spoke to Mr. Stuart about the $30,000 check on
November 3, 1997. Stuart, who said he has known Ted Sioeng for ten
years, claimed the check was written in partial satisfaction of a loan
Ted Sioeng had extended to him. Stuart said no one gave him the money
to give to Sioeng and that he does not recall Sioeng asking him for it.
He said that Jessica Elnitiarta, however, may have asked him for the
money. Stuart declined to discuss what line of business he is in.
Committee staff asked Stuart about Sioeng and his family more
generally. Stuart characterized Sioeng as a kind, good-hearted, and
generous man with lots of friends from all over the world. Sioeng, who
Stuart knows as ``Sioeng San Wong,'' is frightened now, according to
Stuart, who has not seen Sioeng in quite some time. Stuart also knows
Jessica Elnitiarta, who he said handles the Sioeng family businesses in
this country.
---------------------------------------------------------------------------
C. Other contributions and questionable transactions 84
---------------------------------------------------------------------------
\84\ Note that the Committee could not determine whether Panda
Industries' $50,000 contribution to the National Policy Forum (NPF) was
made with domestic or foreign money. The Committee's analysis follows.
Panda Industries, Inc. contributed $50,000 to the NPF. Grand
National Bank check from Panda Industries signed by Jessica Elnitiarta
(Ex. 62). The check was paid on Aug. 3, 1995. Grand National Bank
statement of Panda Industries, Account number 240539301, Aug. 1-Aug.
31, 1995. (Ex. 63).
Because of multiple deposits into and withdrawals from the Panda
Industries account during the relevant time frame, the Committee has
been unable to pinpoint one particular source--domestic or foreign--for
Panda's contribution to the NPF. That said, there are two potential
sources of funds for the $50,000 contribution. On July 17, 1995, Panda
Industries deposited a $50,000 check written the same day on Sioeng San
Wong's account. Grand National Bank check from Sioeng San Wong to Panda
Industries, Inc. for $50,000 (Ex. 64). Prior to this deposit, the Panda
Industries account carried a balance of roughly $1,300. Grand National
Bank statement of Panda Industries, Inc. account number 240539301, July
1-July 31, 1995 (Ex. 65). Also on July 17, 1995, $70,000 was deposited
into Sioeng San Wong's account. The $70,000 derived from a check
written on Vinh B. La's account at the United Pacific Bank. United
Pacific Bank check written by Vinh B. La to Cash, July 17, 1995 (Ex.
66). This $70,000 appears to be the source of Sioeng's $50,000 transfer
to Panda Industries as, save for the $70,000, Sioeng's account carried
a balance of less than $5,000. Grand National Bank statement for Sioeng
San Wong, account 210459806, July 1-July 31, 1995 (Ex. 67).
It is difficult to trace the source of the $70,000 transferred from
Vinh La's account. On the day the check was paid (July 18, 1995), La's
account carried a balance of $101,326.93. United Pacific Bank Statement
of Vinh Binh La, account 001-017438, July 25, 1995 (Ex. 68). Half of
this amount is attributable to a July 14, 1995 deposit of $50,000
withdrawn from a savings account maintained by Loh Sun International at
the United Pacific Bank. United Pacific Bank deposit slip for account
of La Vinh Binh, July 14, 1995 (Ex. 69). The savings withdrawal request
was signed by Kent La, who later signed a contribution check from Loh
Sun to the DNC. Id.
The source of the $50,000 withdrawal from Loh Sun's United Pacific
Bank savings account appears to be a transfer from a Loh Sun checking
account maintained at the same bank. Loh Sun's savings account was
opened with a deposit of a $200,000 check, dated January 4, 1995,
written on Loh Sun's checking account. United Pacific Bank statement of
Loh Sun International, Inc. account 001-409204, Jan. 31, 1995 (Ex. 70).
An examination of the quarterly statements for Loh Sun's savings
account from the time it was opened until the $50,000, July 1-July 31,
1995 withdrawal was made on July 14, 1995 reveals that the withdrawal
derived from the $200,000 deposited on January 4, 1995. United Pacific
Bank statement of Loh Sun International, Inc., account 001-720-806,
Mar. 31, 1995 (Ex. 71). There were no other significant deposits made
into the account during this time period. Id. The Committee does not
know the source of the $200,000 transferred from Loh Sun's checking
account.
The second potential source of Panda Industries' contribution to
the NPF was an $80,000. telephone transfer into the Panda Industries'
account. The transfer was made on July 24, 1995 and increased the
balance in the account to $124,877.52. (Ex. 65). The Committee has
learned that the telephone transfer was requested by Jessica Elnitiarta
and made from another account maintained in the name of Panda
Industries (``PI 314''). Customer Authorization for Funds Transfer,
July 24, 1995 (Ex. 72). However, the Committee could not determine with
the information at hand the source of the $80,000 transferred from PI
314.
In sum, the Committee cannot determine whether any portion of Panda
Industries' $50,000 contribution to the NPF derived from a foreign
source.
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PRC Consulate in Los Angeles--two $20,000 checks,
both dated November 15, 1996 and consecutively numbered, were
written on Jessica Elnitiarta's account to the PRC Consulate
General in Los Angeles.85 The checks were deposited
by the Consulate in its ``Education Section'' account; an
account that appears to have been opened with Elnitiarta's
money.86 The purpose behind these checks--and why
two were written instead of one--is not known.
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\85\ Two $20,000 checks from Jessica G. Elnitiarta to the Consulate
General of the PRC (Education Section), November 15, 1996. Grand
National Bank check number 442 & 443 from Jessica G. Elnitiarta to
Consulate General of the PRC (education section) for $20,000, Nov. 15,
1996 (Ex. 73).
\86\ Bank of China account statement for account number 5011-
0600059-000, December 31, 1996. (Ex. 74). The two $20,000 checks were
credited to the L.A. Consulate's Education Section account as a $4,000
and a $36,000 deposit. A Bank of China representative could not explain
why the two checks were credited in that way.
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Overseas Chinese Friendship Association--a $10,000
check was written on Sioeng San Wong's account to the ``O.C.
Chinese Friendship Ass.'' on April 15, 1995.87 The
memo line the check indicates that it was meant as a donation.
The Committee could not determine the nature of the donation.
The check may have been intended for an organization called the
Overseas Chinese Friendship Association. The association was
set up at the direction of the PRC's Communist Party apparatus,
specifically, the National Committee of the Chinese People's
Political Consultative Conference (``CPPCC''), and was meant to
forge and strengthen ties between the United Front Work
Department of the CPPCC Central Committee and overseas Chinese
in this country and elsewhere.88
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\87\ $10,000 Grand National Bank check from Sioeng San Wong to the
O.C. Chinese Friendship Ass., April 15, 1995. (Ex. 75).
\88\ BBC Summary of World Broadcasts, January 20, 1995.
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Dr. Daniel Wong--a $5,000 check was written to
Wong on the account of Sundari, Sandra, and Laureen Elnitiarta
on February 15, 1996.89 Wong is a Republican who ran
for the California State Assembly.
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\89\ $5,000 Grand National Bank check from Sundari, Sandra, and
Laureen Elnitiarta to Dr. Daniel Wong, February 15, 1996. (Ex. 76).
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Norman Hsu--a $7,500 check was written on Sioeng
San Wong's account to Friends of Norman Hsu on March 11,
1995.90 Hsu is a former president of the Chinese-
American Association.
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\90\ $7,500 Grand National Bank check from Sioeng San Wong to
Friends of Norman Hsu, March 11, 1995. (Ex. 77).
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PRC Consulate in Los Angeles to Hollywood
Metropolitan Hotel--a $3,000 check, dated March 22, 1996, was
written on the PRC Consulate's account at the Bank of China,
Los Angeles branch to the Hollywood Metropolitan Hotel, a
business owned and operated by the Sioeng family.91
Three days later, the check was deposited into a Grand National
Bank account maintained by Panda Hotel Investment,
Inc.92 Nothing on the check itself or told to the
Committee by Jessica helps explain the instrument's purpose.
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\91\ $3,000 Bank of China check from the Consulate General of the
People's Republic of China to the Hollywood Metropolitan Hotel, March
22, 1996. (Ex. 78).
\92\ Id.
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part iv. conclusion
The story of Ted Sioeng and his family is a fascinating
glimpse at how quickly an individual or family--even one with
markedly limited U.S.-based income and with the vast majority
of its wealth overseas--can become an influential figure with a
political party or in an election. In Sioeng's case, some
$400,000 in contributions to the DNC in 1995 and 1996 earned
him remarkable access to the President and Vice President of
the United States, and not just for him, but for his family and
friends as well.
The Sioeng story, though, has only been partially told by
the Committee. Still to be answered are many questions, among
them the following:
Was money sent by Sioeng from Hong Kong to the
United States for the express purpose of making political
contributions;
What was the ultimate source of the funds Sioeng
wired from Hong Kong to accounts in this country;
What was the nature of Sioeng's relationship with
the Government of China; and
Why did Sioeng and his family decide to start
making large political contributions during the 1996 election
cycle.
It is clear that Sioeng and his family became major
Democratic donors during the 1996 election cycle and that they
did so with money wired from overseas. The questions above take
the analysis to a new level--one that focuses less on the
Sioeng family's contributions and more on their motives for
making them. Until the questions are answered, Sioeng, like
Charlie Trie, John Huang, Maria Hsia, and others, will remain a
mysterious figure who was embraced all-too eagerly by a money-
hungry DNC.